Good Example OF Performance Learning Systems Essay

Introduction

The concept of performance and compensation management comes under the principle of Human Resource Management which is responsible for maintaining compensations for employees and their performance. It includes ensuring job descriptions are followed and maintained, analyzing data for salaries and ensuring that the pay structure is aligned with the market.
Evaluating the performance of a company/organization is very critical, especially for managers. In most cases Key Performance Indicator (KPI) is used in the evaluation of the success of a particular activity in which the organization or company is involved (Marr,2012). Therefore, this paper focuses on the evaluation of ABC Limited, an imaginary sales company dealing with furniture. Hence, the key performance indicator was improving sales through acquisition of new customers.

Challenges in Management Controls

The principle of performance and compensation payment faces some key management issues which are crucial to be resolved in order to system work effectively. Compensation management is more than providing paychecks. In many companies, the performance of employees is relative to organizational goals and it serves as a basis for compensation. Following are some key issues which management may face.

Forms of Pay

Pay is paid on cash base and the bonus pay, and some form of non-cash compensations. The most challenging part for management is determining the value of the non-cash compensation, and the value of bonus.

Forming a pay philosophy

All organizations have to come up some underlying philosophy about jobs and people who perform those jobs. Compensation programs have to consider the value of the work that form the internal support for the organization. The compensation philosophy determines the rate and timings of pay and increases in pay. It also determines which jobs should be paid bonuses and non-cash compensations.

Employee Incentive

Performance for pay is a popular concept. Compensations is not only paid to boost the high-performing employee’s morale, but also to motivate those who are underachieving.

Presentation of compensation

How a manager presents the pay is also a challenge. A manager may create an ill when instead of delivering good news. It is important to be very specific when speaking about compensation rather than speaking in categories like good or other qualifiers.

Pay competitiveness

Businesses and managers have to offer a competitive rate from the market to attract and retain the talent pool.
Automation and Outsourcing
Outsourcing means using resources of other organizations to facilitate running of your organization. It becomes even more challenging to evaluate the compensation and performance level in that case. However, automation is a solution which computerizes the process and makes complex process much simpler.

Performance & Compensation and other organizational systems

The system of performance and compensation is applied to entire organization and has to be blended with every organization system. Performance includes activities which are recurring to establish goals of the organization and monitor the progress towards those goals and making any necessary adjustments to achieve those goals. These activities are done by leaders and managers to achieve the goals set up by the senior management, and performance and compensation is applied to each organizational system to keep everything aligned together and plays the most important role in achievement of goals through employees.

Performance & Compensation management for ABC Hospital

Literature Review
Supporting Physicians' Professionalism and Performance - A literature review
Dr Kelly Shaw, FAFPHM on behalf of The Royal Australasian College of Physicians conducted a literature review assessing the various competencies valued in physicians and doctors across the globe. In her compilation she looked at the systems used in State Hospitals of Australia, The United States of America, The United Kingdom, Canada and New Zealand. All the systems discussed are overwhelmingly based on behaviors and not results, because results are either far off into the future or cannot be assessed properly.
While the areas of assessment vary in different countries, they do boil down to certain common domains that can be used to assess and appraise doctors. The most important and foremost area is that of ‘medical expertise’. This covers knowledge and skills that are acquired through theoretical learning i.e declarative knowledge. The second most important area is that of communication. This includes both interpersonal and written communication such as record keeping and other paperwork. The third domain is that of professionalism. This area covers professional relationships with colleagues, teamwork and ethical behavior.
Factors influencing performance of health workers in the management of seriously sick children at a Kenyan tertiary hospital – participatory action research
This research was conducted as a result of identifying that child care in low income countries has become a serious challenge, and that guidelines for best clinical practices remain undiscovered. Therefore, a study was conducted was on the Keyatta National Hospital in Kenya that brought to the forefront various obstacles that were keeping the hospital from implementing best practices. From these obstacles, the study proposes alternative solutions as a way forward. The issues being faced were a gap between the hospital’s vision and reality, poor communication, lack of objective measures to evaluate and monitor healthcare quality, lack of planning for strategic change, limited change management know-how, and hierarchies. From field observations, it was found that the three factors needed to be worked upon were predisposing factors, enabling factors and reinforcing factors which would make employees good decision makers, equip them with knowledge and skills and keep them motivated. Furthermore, in an attempt to address the gap between skills and knowledge, the research suggested development of Quality Indicators (QIs) through consensus by all the stakeholders and subsequent communication of these as a measure of performance while also training staff to link evidence and QIs. Engagement of the staff was also seen to enhance team building along with capacity building which would facilitate organizational structure, communication and negotiation skills. It was also recommended that audits of the hospital be made routine to motivate employees for impending change and to extract the best service out of them by developing a structured and process-based culture. Multi disciplinary feedback, role clarity and a decentralized structure was also encouraged to solve problems of inefficiency.

Utilization of Performance Appraisal Systems in Health Care Organizations and Improvement Strategies for Supervisors

This article talks about how it is as important for a healthcare organization as for any other organization to seek improved employee performance, to address wage/salary issues and to promote improved career planning. Using the case of a medium sized medical center, it is described how performance appraisal was administered once a year, with employees first appraising themselves, then their supervisor appraising them and then a calibration meeting in which the evaluations were discussed and future action plans determined. The appraisal form was divided into two parts. The first section was a standard one that applied to everyone, addressing professionalism, efficiency, services and quality of work while the next section was customized to each position within the organization. The ratings needed to be supported by critical incident reports. A rating of 1 (lowest) and 3 (highest) would require supporting documentation. To relieve themselves of additional work, supervisors started rating employees at 2, and asked employees to rate themselves at 2 too in their self appraisal. Lastly, the author puts forth a set of recommendations to make appraisals effective. He suggests extensive training for evaluators, high employee involvement, open communications, to value employee input at every stage and give them a chance to decipher the appraisal before the one-on-one meeting with their supervisor. He also recommends having a high frequency of appraisals, means for rewards and recognition and giving the entire process the feel of career planning, so that the employee feels valued and cared for.

Proposed System

Overview
Peer (fellow RMOs) evaluation – 15%
Paramedical Staff and Nurses – 10%
We suggest that the appraisal using our forms be carried out twice a year i.e. every six months. The system is not automated so, the forms will be stored in the files the hospital maintains on each RMO. Thus, every six months detailed appraisal meetings can be carried out between the supervisors and the RMOs to discuss their progress, development needs and rewards if any.

Works Cited

Amin, K. (2013). Human Resource Performance Appraisal System in Hospitals of Karachi. Pakistan Business Review, 68-105.
Bhatia, K. (2010). Compensation management. Mumbai: Himalaya Publication House .
Chandra, A. (2004). Utilization of Performance Appraisal Systems in Health Care organizations and Improvement Strategies for Supervisors. The Health Care Manager, 25-30.
Flannery, T. P., Hofrichter, D. A., & Platten, P. E. (1996). People, performance, and pay : dynamic compensation for changing organizations. New York: Free Press.
Irimu, G. W., Greene, A., Gathara, D., Kihara, H., Maina, C., Ngacha, D., et al. (2014). Factors influencing performance of health workers in the management of seriously sick children at a Kenyan tertiary hospital-participatory action research. BMC Health Services Research, 1-29.
Vogel, B. H., & Quatt, C. W. (2010). Nonprofit executive compensation : planning, performance, and pay. Washington DC: BoardSource.